30 Year Fixed Rate Mortgage

The 30 year fixed rate loan is the classic option. The monthly payments are spread over thirty years, and thus are lower when compared to other short-term mortgages. The lower monthly payments free up money that the borrowers can invest in more profitable ventures. The 40 year old mortgages have lower monthly payments than that of a 30 year home loan. The fixed interest rate mortgage is usually 'locked-in' at the time of obtaining the mortgage. The rate thus remains the same throughout the life of the loan. The amount of interest paid in a 30 year fixed mortgage is higher when compared to a short-term loan. The interest is 100% tax-deductible, so the after-tax cost is considerably reduced.